Saturday, February 1, 2014

Applied Food Ingredients Company, Inc. vs. Commissioner of Internal Revenue, G.R. No. 184266, November 11, 2013

APPLIED FOOD INGREDIENTS COMPANY, INC., VS. COMMISSIONER OF INTERNAL REVENUE, G.R. NO. 184266, NOVEMBER 11, 2013

FACTS:

Petitioner Applied Food Ingredients Company, Inc. (AFIC) alleged that from September 1998 to December 31, 2000, it paid an aggregate sum of input taxes of P9,528,565.85 for its importation of food ingredients, as reported in its Quarterly VAT Return. Subsequently, these imported food ingredients were exported between the periods of April 1, 2000 to December 31, 2000. AFIC claimed that the export sales which transpired from April 1, 2000 to December 31, 2000 were “zero-rated” sales pursuant to Section 106 (A) (2)(a)(1) of the NIRC of 1997.

On March 26, 2002 and June 28, 2002, AFIC filed two separate applications for issuance of tax credit certificates amounting to a total of P9,528,565.85. Without waiting for the Commissioner's decision, AFIC elevated the case before the CTA on July 24, 2002.